1990 (11) TMI 195

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....romotion expenses Rs. 57,030 (vii) Business promotion expenses Rs. 2,247 ------------------------------- Rs. 1,46,684" ------------------------------- 3. The Income-tax Officer accordingly made a disallowance of Rs. 9,348 being 20% of the amount of Rs. 1,46,684. On appeal, the CIT (Appeals) held that assessee would be entitled to relief in regard to an amount of Rs. 544 spent in New York. This resulted in a relief of Rs. 108. While rejecting the assessee's claim the CIT (Appeals) was of the view that the expenses incurred outside India were to be excluded for the purpose of disallowance under section 37(3A) and that no evidence has been produced to substantiate the claim that the expenses had been incurred outside India. Here....

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....xpenditure incurred by an assessee, being a domestic company as defined in clause (2) of section 80-B, or a person (other than a company) who is resident in India in respect of expenditure incurred wholly and exclusively on--- (i) advertisement, publicity and sales promotion outside India in respect of the goods, services or facilities which the assessee deals in or provides in the course of his business ; (ii) (Not relevant). " 7. In view of the provisions of sub-section (3B)(i) of section 37, expenditure incurred on advertisement, publicity and sales promotion is to be considered for disallowance under sub-section (3A). Sub-section (3C), however, carves out an exception inasmuch as an expenditure incurred on advertisement, public....